July 4, 2005

Notice to Potential Customers
Non-Standard Summer Use Storage Service Offering

TransGas Limited (TransGas) hereby announces an Open Season for storage services. This Open Season is being conducted pursuant to the terms and conditions contained within The TransGas Comprehensive Tariff and the terms and conditions set out herein. Through this Open Season, TransGas is offering to Customers a non-standard storage service package that can be made available based TransGas’ physical capabilities to store gas. This service package, which is a specific combination of existing storage services, will allow customers to take advantage of additional storage capacity rights.

The capacity, term and conditions that apply to this Open Season offering are as follows:

• 1.5 PJ of storage capacity (1 500 000 GJs);
• term of service = 2005 August 1 to 2006 October 1;
• S-49 rate, no firm injection rights;
• firm withdrawal rights (with an associated rate equivalent to the excess withdrawal rate charged on a monthly demand basis) of 8.2 TJ/day (8 200 GJ/day) from 2006 April 1 to 2006 October 1;
• this service does not have any injection rights associated with it; injection would be by injection rights acquired as biddable injection service or excess injection service;
• injections or transfers into this storage service storage will be allowed throughout the entire term of service;
• withdrawals or transfers from this storage service are not allowed during the period 2005 November 1 to 2006 March 31;
• inventory must be removed from this storage service by the end of the term of service (2006 October 1); and
• this service does not have renewal rights.

This non-standard storage service package:

• will be allocated to all parties expressing an interest on a pro rata share basis (each request will be pro rated by the ratio of the capacity available divided by the total requested capacity) with each pro rata share also including a proportionate amount of the firm withdrawal rights; and
• will not be evergreening.

This non-standard storage service package is not bundled with any firm injection rights. It is TransGas practice to allocate additional injection capacity through the biddable injection process. However, TransGas does anticipate that there will be a significant amount of available monthly injection capacity commencing August 1 and for the rest of the summer. As well, TransGas is planning to offer a “rest of summer” (i.e. August 1 to November 1) biddable injection amount later in July.

All customer requests received during this Open Season will be assigned the same queue position, i.e. there will be no priority allocation among these requests, as described in the Queue Procedure in the Tariff. Applications for standard Service that have already been received before this Open Season will maintain a higher priority in the TransGas Queue for standard Storage Service. Open Season requests will be considered as official service requests. No Open Season queue deposit will be required as service will be offered shortly after the close of the Open Season.

This non-standard storage service offering will be contracted under TransGas summer use rate category (S-49), with additional conditions to reflect the terms and conditions outlined above.

The Open Season commences at 12:00 a.m. (noon) CDT on 2005 July 4th and will close at 12:00 a.m. (noon) CDT on 2005 July 11th. Interested parties are invited to complete the attached Offer Sheet and return it to TransGas’s office by 12:00 a.m. (noon) CDT on 2005 July 11th. TransGas intends to offer this service to those applying under the Open Season on 2005 July 11th.

No alternatives to this non-standard storage service package will be considered in this Open Season process.

If you have any questions/concerns, or would like to discuss the implications of this Open Season offering for your natural gas transportation portfolio, please contact your Key Account Manager, Chris Uhren at (306) 777-9501.

Open Season requests can be faxed, couriered or e-mailed to TransGas at the following addresses/phone number:

Attention: Randy Greggains
Manager, Customer Facility Requests
TransGas Limited
500 – 1777 Victoria Avenue
Regina SK S4P 4K5
Fax: (306) 525-3422
E-mail: rgreggains@transgas.com

Kindest regards,

Randy Greggains
Manager, Customer Facility Requests